sai and cpu

The fact that I mentioned SAI GLOBAL, along with Computershare is due to their business sophistication. These two businesses compete in a global market with non-imitable business models and competitive advantages, (Buffett called "economic moat"). This means "monopoly", "high return on equity" and "sustainable growth".

The recent drop in SAI was a great buy opportunity and was one of my mistake of omission. I liked SAI business monopoly and the demand for its service, however, its core competence in standard compliance which makes up dominant chunks of its business revenue and is built upon license lease from its former parent firm, Standards Australia worries me about its future, in the case of breakup between Standard Australia and SAI.

Back to Computershare, one of the largest share registry management firm. With the emerging trend of financial technology, big data and data mining, Computershare can leverage pivotal data analysis and management used in its monopoly share registry business, to expand its business service revenue, by providing service ranging from mortgage management to cost-saving measures in share-related administrative cost for public-listed firms.

CPU owns pivotal technology, serve the global market and has a monopoly business.
Based on 1H16 result of 0.3596 cent AUD, it's trading at P/E of 12.
While its growth might stalls temporarily, its underlying competitive advantage remains intact.
I am in. I think CPU is an even better deal than SAI.

PS: what's with the share buy-back? isn't it a better deal for shareholders?